Argentine President Javier Milei finds himself at the center of a political storm following a controversial social media post about the $LIBRA cryptocurrency. On Friday, Milei took to X (formerly known as Twitter) to promote the digital currency, suggesting it could serve as a financial lifeline for small businesses and start-ups. However, the president quickly removed the post, a move that coincided with a dramatic plunge in the cryptocurrency's value, leaving investors facing significant losses.
The fallout was swift and severe. Former President Cristina Fernández de Kirchner publicly branded Milei as a "crypto scammer," a statement that has since garnered over 6.4 million views. Political adversaries have seized the moment to criticize Milei, intensifying the call for accountability. On Sunday, lawyers lodged fraud complaints in Argentina's criminal court, prompting the government's Anti-Corruption Office to launch an investigation into the matter.
The Anti-Corruption Office's inquiry will focus on whether any misconduct occurred, including any potential involvement by President Milei. Jonatan Baldiviezo, one of the plaintiffs, asserted that a fraud crime had been committed and highlighted the president's actions as crucial to the case. Despite these allegations, plaintiffs clarified that Milei was not involved in the cryptocurrency's development.
In response to the uproar, Argentina's presidential office claimed that Milei's post was deleted to prevent "speculation" in light of public feedback. Nonetheless, this explanation did little to quell the mounting criticism. Esteban Paulón, from the opposition Socialist Party, announced plans to initiate impeachment proceedings against Milei.
The investigation now seeks to uncover any culpability in the alleged fraud. As scrutiny on Milei intensifies, the political ramifications continue to unfold. The situation underscores the potential dangers of intertwining politics and volatile financial instruments like cryptocurrencies.